Wells Fargo & Co (WFC): Today's Featured Financial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Wells Fargo ( WFC) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.6%. By the end of trading, Wells Fargo fell 35 cents (-1.1%) to $32.02 on average volume. Throughout the day, 20.3 million shares of Wells Fargo exchanged hands as compared to its average daily volume of 24.9 million shares. The stock ranged in price between $32-$32.55 after having opened the day at $32.07 as compared to the previous trading day's close of $32.37. Other companies within the Financial sector that declined today were: Kingsway Financial Services ( KFS), down 19.1%, MBIA ( MBI), down 19%, Vestin Realty Mortgage I ( VRTA), down 14.3%, and Credit Suisse ( DGAZ), down 13.3%.
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Wells Fargo & Company provides retail, commercial, and corporate banking services. The company operates in three segments: Community Banking; Wholesale Banking; and Wealth, Brokerage, and Retirement. Wells Fargo has a market cap of $170.3 billion and is part of the banking industry. The company has a P/E ratio of 10.2, below the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Monday. Currently there are 20 analysts that rate Wells Fargo a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Wells Fargo as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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